ECO 550 - Long Term Investment Decisions

Assume that the industry you wrote about in Assignment 3 wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.

Write a four to five (4-5) page paper in which you: Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation. Justify the rationale for the intervention of government in the market process in the U.S. Assume that the company's is considering a merger. The possible merger currently faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise...